Scheme Classification by Organisation Structure

Open Ended Schemes:

Open-Ended Schemes are perpetual and open for subscription and repurchase on a continuous basis on all business days at the current NAV. SEBI has introduced the categorization of open-end mutual funds to ensure uniformity in the characteristics of similar types of schemes launched by different mutual funds. This will help investors to evaluate the different options available before making an informed decision to invest.

Types of Open Ended Schemes

Close Ended Schemes:

Close-Ended Schemes have a fixed maturity date. The units are issued at the time of the initial offer and redeemed only on maturity. The units of close-ended schemes are mandatorily listed to provide an exit route before maturity and can be sold/traded on the stock exchanges.

Interval Schemes:

Interval Schemes allow purchase and redemption during specified transaction periods (intervals). The transaction period has to be for a minimum of 2 days and there should be at least a 15-day gap between the two transaction periods. The units of interval schemes are also mandatorily listed on the stock exchanges.